Nissan sees FY op profit down 14 percent

By IBT Staff Reporter On 06/23/11 AT 2:56 AM

Nissan Motor Co <7201.T> forecast a better-than-expected 14.4 percent fall in annual operating profit on Thursday, defying a quake-induced setback in the past few months and projecting another year of record sales.

Japan's No. 2 automaker forecast an operating profit of 460 billion yen ($5.73 billion) for the year to March 2012, beating an average forecast of 432 billion yen in a survey of 21 analysts by Thomson Reuters I/B/E/S.

It expects net profit of 270 billion yen, down 15.4 percent from last year, assuming an average dollar rate of 80 yen and euro of 115 yen. Revenue is seen rising 7.1 percent to 9.4 trillion yen.

Nissan Chief Executive Carlos Ghosn had flagged a positive surprise for sales a day earlier, saying the numbers would call for significantly higher volumes this year.

Speaking at a Thomson Reuters Newsmaker event on Wednesday, Ghosn had also said Nissan was very near normal production levels after the March 11 earthquake and tsunami disrupted the industry's supply chain on an unprecedented scale.

Before the forecasts, Nissan's shares ended up 1.3 percent, taking a cue from Ghosn's bullish comments on Wednesday.

Nissan has been charging ahead in China and has been laying the groundwork for industry-beating growth in other emerging markets such as India and Russia. Plans to accelerate growth in Brazil are also in the pipeline and will be announced soon, Ghosn said on Wednesday.